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A Taxonomy for Next-gen Reasoning — Nathan Lambert, Allen Institute (AI2) & Interconnects.ai

Jul 19, 2025 · 19:21

Nathan Lambert, senior research scientist at AI2 and founder of Interconnects.ai, argues that next-generation reasoning models require a taxonomy of four traits: skills, calibration, strategy, and abstraction. While current models excel at math and code (skills), they overthink easy problems, wasting tokens and latency—calibration is needed to match output length to task difficulty. The real frontier is planning: models must learn strategy (choosing the right direction) and abstraction (breaking problems into tractable sub-tasks) to enable long-horizon agents like Deep Research and Claude Code. Lambert traces how OpenAI's Q*→Strawberry→o1 took 12–18 months of human data to teach backtracking and verification; planning should be easier because humans can write 5-step plans. He predicts post-training compute could reach parity with pre-training, citing DeepSeek's shift from 0.18% post-training compute in V3 to an estimated 10–20% for R1. The path forward: collect diverse verifiable questions, filter by difficulty, run stable RL—then scale.

Evaluating Domain Specific LLMs for Real World Finance — Waseem Alshikh, Writer

Apr 22, 2025 · 12:01

Writer CTO Waseem Alshikh presents FailSafe, a benchmark for evaluating LLMs in real-world finance, challenging the notion that general-purpose models suffice. Tests on query failures (misspelling, incomplete, out-of-domain) and context failures (missing context, OCR errors, irrelevant context) reveal that reasoning models like o1 and o3 perform 50% to 60% worse on context grounding than smaller domain-specific models, despite higher answerability. Even the best model achieves only 81% combined robustness and grounding, meaning roughly 20% of responses are wrong. Alshikh argues that domain-specific models remain essential, and that full-stack systems—RAG, guardrails, and grounding—are necessary for reliable deployment in high-stakes finance.

Patrick Dougherty: How to Build AI Agents that Actually Work

Feb 22, 2025 · 17:44

Patrick Dougherty, co-founder and CTO of Rosco (acquired by Klarity in 2024), argues that building effective AI agents requires prioritizing reasoning over inherent model knowledge, iterating on the Agent-Computer Interface (ACI) rather than fine-tuning or relying on frameworks. He defines an agent as a system that takes directions, calls tools, and autonomously reasons—not a prompt chain. His team abandoned RAG-style knowledge injection for discrete tool calls (e.g., SEARCH TABLES, GET TABLE DETAIL), finding that GPT-4o often hallucinates impossible SQL queries while o1 correctly identifies missing data. Switching tool-response formats—Markdown to JSON for GPT-4o, JSON to XML for Claude—dramatically improved accuracy. For production, he warns against over-dependence on abstractions like LangGraph due to security needs (e.g., OAuth credential cascading). In multi-agent systems, a manager agent should delegate to 5–8 specialized worker agents, incentivized by the overall goal, to avoid loops. The true moat, he concludes, is the ecosystem—UX, connections, and security—not system prompts.